Following the European Central Bank’s massive quantitative easing programme, which was announced in November last year, European equities have rallied perhaps a bit too much, according to the firm. “Given that valuations are sitting at a 10-year high on a forward price-to-earnings metric, strong earnings growth is increasingly necessary to justify these valuations,” the firm […]
Tag: Europe
JP Morgan sees an earnings rebound lifting US equities
Investors should, however, lower their return expectations to single-digits for the S&P 500 index, the firm said. The index has recently been hitting all time highs: “We continue to favour US equities, despite slightly higher valuation levels. The base case for the S&P 500 total return in 2015 is in the single-digit range, which […]
The HKG government plans another sukuk bond
In connection with a potential second US dollar sukuk, the government said it has given several mandates. HSBC and Standard Chartered Bank are joint global coordinators, joint lead managers and joint bookrunners, and CIMB and National Bank of Abu Dhabi PJSC are joint lead managers and joint bookrunners. This month, the parties will arrange a […]
AXA IM turns underweight on Chinese equities
“[A] word of caution is warranted following the stellar performance of Chinese equities over the past year or so. “Today A-shares trade at or above a 20x multiple and look simply expensive. A correction would offer a welcome breathing pause,” the fund house said in its asset allocation strategy note. In the medium-term, the investment […]
Get EM exposure through Europe
The price is not right for direct exposure to emerging markets stocks, according to David Herro, chief investment officer for international equities at Harris Associates.
Fund selectors tilt toward Asian equities
Asian equities ex-Japan stood out as this year’s preferred asset class, according to an FSA survey of fund selectors and portfolio managers.
Bond review shows European underperformance
In 2014, European bonds were the biggest underperformers in both corporate and government bond segments, according to data from FE.
Pictet AM favors Japanese equities
Pictet Asset Management is upbeat on Japanese equities and sees compelling investment opportunities arising out of improved corporate earnings growth.
East Capital frontier market fund
The fund house believes its experience investing in the relationship-based cultures of Eastern Europe has direct application to frontier market investing, said Tim Umberger, senior adviser.
The R word
Fund selectors and wealth management professionals attending FSA’s Fund Selector Forum last week in Hong Kong overwhelmingly said regulation is the biggest challenge facing their business.
